Use the Following Information to Answer the Question(s) Below -Under the Entity Theory,a Consolidated Balance Sheet Prepared Immediately After

question 47

Multiple Choice

Use the following information to answer the question(s) below.

Pasfield Corporation acquired a 90% interest in Santini Corporation for $90,000 cash on January 1, 2014. The following information is available for Santini at that time
$\begin{array}{lccr}&\text { Book Value}&\text { Fair Value }&\text { Difference }\\\text { Current assets } & \$ 40,000 & \$ 50,000 & \$ 10,000 \\\text { Plant assets } & 60,000 & 75,000 & 15,000 \\\text { Liabilities } & \underline{(50,000) } & \underline{(50,000) } & 0 \\\text { Net assets } & \underline{\underline{\$ 50,000}} & \underline{\underline{\$ 75,000}} &\end{array}$

-Under the entity theory,a consolidated balance sheet prepared immediately after the business combination will show noncontrolling interest of

• A)$5,000.
• B)$7,500.
• C)$9,000.
• D)$10,000.

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Definitions:

Man-Made

Something made or constructed by human beings rather than occurring naturally in the environment.

Permanent Magnets

Materials that maintain a persistent magnetic field without the need for continuous energy input.

Natural Magnets

Materials found in nature that possess magnetic properties capable of attracting iron, such as magnetite or lodestone.

Magnetic Poles

The two ends of a magnet where the magnetic field is strongest, conventionally labeled as the North and South poles.